China's Rural Financial System Change And The Economic Entities Behavior Study

The revenue gap between citizens and farmers in China is bigger and bigger in 1990's and then on. The problem of rural community, agricultural industry and farmers is called "San-nong" problem and it is concerned by the total society nowadays. The problem is partly due to too much resources drawing out from rural areas. One of the resolve means is to supply funds to the rural society. But in the perspective of credit funds supply from the formal financial institutions, the Agricultural Bank of China is drawing back its organizations and business since the commercial reform began, ABC is now only a agricultural institution in name; the Agricultural Development Bank of China is a bank of supplying purchasing loans to some kind of enterprises, not to farmers and ordinary rural enterprises; the Rural Credit Cooperatives are the most important financial institutions in rural areas nowadays, but the problems of property rights, historical costs and improper supervision system are restricting RCCs' development; the Post Saving Organizations only draw out funds from rural areas. At present, farmers and rural enterprises rely more on the informal financial institutions to get credit. To increase the funds supply to the rural society, it is necessary to explain the change course of the rural financial institutions, analyze the factors that influence the changing both in formal and informal finance perspectives. It is of great reality sense to choose the rural financial institutional change as the thesis' topic.But documentaries of foreign scholars related to financial institutional change seldom analyze China's rural financial institutions. As to the domestic documentaries on the change of rural of financial institutions, the quantization analysis of a long period is not enough, also the research on the factors influencing the institutional change, and the relationship between formal and informal finance. It is necessary to analyze the rural financial institutional change in a new framework.The thesis analyzes China's rural financial institutional change in the paradigm of institution-behavior. The central government formulates the formal financial institution to maximize its revenue, influencing the informal financial institution by its policies. Its behaviors are also restrained by the behaviors of other economic agents, path dependence of institutional change and circumstances. Restricted by the formal financial institution and other conditions, local government, farmers and rural enterprises produce the informal financial institutiona to obtain the potential revenue. Different economic behaviors determined the imposed change course of formal...